TRIPOLI, (Reuters) – Libya’s state-owned National Oil Corporation (NOC) ratified a gas-focused exploration agreement with PGNiG on Monday in which the Polish company committed to drilling at least eight wells at a cost of $108 million.
The agreement was signed by NOC Chairman Shokri Ghanem and representatives of the Polish company gathered in Tripoli, Libyan officials said.
It follows similar deals in recent days between NOC and foreign firms that won concessions in December in Libya’s first gas-focused exploration licensing round.
PGNiG PGNI.WA agreed to a minimum work programme of two-dimensional seismic surveying over 3,000 square kilometres and 3D surveying over 1,500 square km in contract area 113 of Libya’s Murzuq basin, the officials said.
Libya wants to become a major gas producer and aims to increase production to 3 billion cubic feet per day (bcfd) by 2010, with a potential for 3.8 bcfd by 2015, up from 2.7 bcfd now.
Demand for its gas has grown as Europe seeks to curb its dependence on Russia and because gas produces fewer of the carbon emissions blamed for global warming.